Time to close all loans decreased to 46 days, the shortest time to close since May 2015, according to the latest Origination Insight Report released by Ellie Mae®. The average time to close a purchase decreased from 51 days in January to 48 days in February, while time to close a refinance also decreased from 48 days in January to 44 days in February. Similarly, the average time to close FHA loans decreased from 51 days in January to 47 days in February. Time to close VA loans decreased from 53 days to 50 days.
Conventional purchase closing rates continued to climb, reaching 74.5 percent in February, up from 73.8 percent in January. Average closing rates for all loans are the highest since Ellie Mae began tracking data in August 2011. Closing rates for all loans increased 1.5 percentage points to 69.9 percent. Refinance closing rates increased to nearly 66 percent, while purchase closing rates increased to just over 74 percent.
In terms of loan purpose, purchases represented 52 percent of all closed loans while refinances as a percentage of lenders’ overall loan volume fell one percentage point to 46 percent.
“For the first time since October 2015, we’re seeing a substantial decrease in days to close from 50 days in January to 46 days in February,” says Jonathan Corr, president and CEO of Ellie Mae. “This could be due to lenders becoming more familiar with the new loan estimate and closing disclosure forms and business process around Know Before You Owe. We’re also seeing closing rates continue their upswing, increasing one percentage point to 69 percent. This is the highest we’ve seen closing rates since we began tracking data in August of 2011.”
For more information, visit www.elliemae.com.